Narrative
Full Description
Project narrative
Between April 1 and June 30, 2011, the Industrial and Commercial Bank of China (ICBC) signed a $30,000,000 USD working capital facility agreement with Australian mining company Perilya Limited. This facility was carried a maturity period of one year, an interest rate of 3-month LIBOR plus a margin of 2.2% per annum, and was not secured by (i.e. collateralized against) any of the assets of Perilya Limited. The facility was fully drawn down in the second quarter of 2011. Record ID#94012 captures the $30 million USD commitment. Then, in May 2012, ICBC rolled over this facility; it extended the maturity by another year and kept the interest rate at 3-month LIBOR plus a margin of 2.2% per annum and the facility unsecured. Record ID#94013 captures this one-year extension. Then, in May 2013, ICBC rolled over the facility and again, this time extending the maturity by another six months. ICBC retained the discretion to extend the facility another six months after its committed term expired. Record ID#94014 captures this six-month extension.
Staff comments
1. Perilya Limited is an Australian base and precious metals mining and exploration company, which owns and operates the Broken Hill zinc, lead, silver mine in New South Wales Australia and, with its takeover of GlobeStar Mining Corporation in December 2010, the Cerro de Maimón copper, gold, and silver mine in the Dominican Republic. In addition to its mining operations, Perilya Limited has an active exploration and development program which includes exploration and development programs in the Broken Hill region of New South Wales and in the Flinders region of South Australia in the vicinity of its Beltana zinc silicate project. Perilya Limited also has extensive exploration programs underway on its Dominican Republic mining and exploration concessions that include a laterite nickel project and highly prospective copper, gold & silver targets near its Cerro de Maimón mine. Perilya Limited is reviewing options for the development of the Mount Oxide Copper Project in the Mount Isa region in Queensland. In addition, Perilya Limited has a 60% interest in the Moblan lithium project located in Quebec, Canada, which is currently undergoing a development study (the remaining 40% is held by SOQUEM, which is an investment company owned by the Quebec Government in Canada) (see pdf pg.2 of "Despatch of Scheme Booklet - Perilya Limited"). 2. As of 2009, Perilya Limited was owned 53.37% by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, China’s third largest zinc producer. However, on September 3, 2013, Perilya Limited announced that it had entered into a binding Scheme Implementation Agreement (SIA) with its major shareholder, Zhongjin Lingnan Mining (HK) Company Limited, a wholly owned subsidiary of Shenzhen Zhongjin Lingnan Nonfemet Co., Limited, under which Zhongjin Lingnan would acquire all the outstanding shares in Perilya that it did not already own by way of a Court approved Scheme of Arrangement for an offer consideration of $0.35 AUD per share (see "Zhongjin Lingnan Proposal to acquire Perilya at $0.35 per share"). The acquisition of the remaining shares was successful (see "Perilya Limited - Company Profile Report"). 3. The average 3-month LIBOR for May 2012 was 0.274%. Therefore, the interest rate has been coded as 0.274% plus 2.2%, or 2.474%.